Question

What are a few companies that made headlines in recent years for major issues they have faced in terms of their company status, decisions( decision-making over time, profit maximization, cost minimization, long-run adjustments, strategic interaction, etc.)

Then, describe the firm you have identified, including a report concerning what they produce and what market they are in. Provide some analysis of the structure of that market

Answer 1

The most recent corporate breakout was the Facebook data leak scandal that happened in year following 2010, when Facebook had opened a platform called open graph. The consumer data from the platform was used by another analytical firm, Cambridge Analytica. The data was used for conducting predictive analysis for Donald Trump’s presidential election voting.

The root cause of this incident was the carelessness of Facebook to allow any firm registered over its network, to access consumer data. Facebook used the consumer’s data without taking prior permission from the consumers. This was morally and socially unethical. This privacy crisis needs to be dealt with efficiently or else the whole platform of Big Data will come under trouble.

Facebook did violate the human right to privacy where it disclosed the consumers’ information to a third party without informing or taking consent of the consumer.

Class action was lodged against both Facebook and Cambridge Analytica for misusing the personal data of customers.

Companies handling such big servers of data must have strict firewalls and definite layers of data protection. Also, any kind of app must ask for any essential data from the customer. The customer must also be socially responsive of the data that he is sharing on apps and he must dig deep to understand the objective of apps behind the collection of data. Consumer must share his crucial information only on validated apps. These are some of the ways through which this data breach can be tackled.

To have a successful business model, without invading user’s privacy, Facebook will be required to establish clear communication and awareness lines with the users. The user should have the sole control of what information can be shared and what information should be clearly protected.

The 3 most challenging factors that the marketing strategies of Facebook will face in the current scenario are:

• Generating traffic and Lead on the site
  • Marketing strategy of the company must be aimed at increasing traffic on the company’s website which is basically the demand for Facebook’s service offering. Facebook needs to evade the fate that Orkut met.
• Identifying the right technology for marketing strategies
  • Current scenario is the time for employing Gamification and AI in marketing strategies. The technology is ever evolving. The marketing strategies of the company must be adaptable to incorporate newer technologies.
• Targeting content for the global audience
  • The coverage of Facebook is huge as it is catering to citizens of various countries in the world. The marketing strategies need to be devised to cater to the needs of all such audiences.

The leadership of Mark Zuckerberg needs to take an active spot in this scenario. It is the duty of Mark to defend his company and employees. He also needs to work hard to retain the internal and external customers. The top management needs to think about ways in which the brand image of Facebook does not get affected. Mark also needs to boost the morale of the internal consumers i.e. the employees. The leadership must also ensure that this kind of ethically and morally wrong activity does not get associated with the name of the company.

The control measures that can be adopted by Mark as well the top management of Facebook to avoid similar situations to occur in future are:

• Regulating data access and restricting its access based on prior approval
• Effective monitoring of the partnerships and alliances formed with the company. This can be done by conducting random audits
• Restrictions imposed on the partner or daughter company by means of a contract
• Facebook apps to share the objective of data access and take proper permission from the user before accessing his or her information